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Adding Natural Resource Indicators: An Opportunity to Strengthen the MCA Eligibility Process

September 11, 2006

The Millennium Challenge Corporation (MCC) currently uses 16 indicators of governance and policy performance to determine a country’s eligibility for Millennium Challenge Account (MCA) finance. The MCC is proposing several changes to its selection process this year. While most of these changes are modest, the addition of two natural resource management indicators, as "supplementary" data initially, is significant. This note focuses on the natural resource indicators; a subsequent analysis will examine the other proposed changes and the implications for country selection.